Major Regulatory Win Sparks Stock Rally
Shares of SMS Pharmaceuticals witnessed a spectacular surge of nearly 17% in today's trading session following a significant regulatory breakthrough. The substantial price movement came after the company announced that the United States Food and Drug Administration (USFDA) has granted approval for reformulated Ranitidine tablets developed by its partner company, VKT Pharma.
The approval covers both 150mg and 300mg dosage strengths of the medication, which is primarily used for treating gastroesophageal reflux disease (GERD), peptic ulcers, and other conditions related to excessive stomach acid production.
Return of Key Medication After Five-Year Gap
According to SMS Pharmaceuticals, this regulatory milestone represents the return of an important acid-reducing medication to the US pharmaceutical market after a gap of five years. The USFDA's endorsement came following comprehensive safety assessments and significant manufacturing improvements aimed at addressing previous concerns regarding NDMA impurity development.
This development is expected to significantly enhance patient access to this vital medication across the United States, providing relief to individuals suffering from various acid-related health conditions. The approval demonstrates the company's commitment to maintaining high quality standards while addressing previous regulatory concerns effectively.
Strong Financial Performance Supports Growth Momentum
The regulatory success comes on the heels of impressive quarterly results from SMS Pharmaceuticals. The company recently reported a staggering 76.4% increase in consolidated net profit, reaching ₹25.14 crore for the quarter ending September 30, 2025, compared to ₹14.25 crore during the same period last year.
Operating revenue showed robust growth, surging by 23.2% year-on-year to reach ₹242.4 crore, up from ₹196.7 crore in the previous year. This growth was driven by strong demand across key business segments. The company's EBITDA for the quarter reached ₹48.34 crore, reflecting a remarkable 51.8% increase from ₹31.85 crore in the previous year.
The EBITDA margin expanded significantly to 19.94% from 16.19% a year earlier, indicating improved cost efficiencies and a more favorable product mix that is contributing to enhanced profitability.
Technical Analysis Points to Continued Bullish Trend
Market experts have expressed strong optimism about the company's stock performance following today's developments. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, SMS Pharmaceuticals share price has demonstrated strong traction with clear signs of price and volume breakout.
Bhosale highlighted that given the current momentum, the stock prices are expected to extend their move towards the 350 zone in the near term, with any dip towards 300 likely to attract buying interest.
Anshul Jain, Head of Research at Lakshmishree, provided additional technical insights, noting that SMS Pharma is breaking out of a flag-like consolidation on the weekly chart. This technical pattern is supported by a massive 1,114% surge in volume on the daily timeframe, indicating strong market participation.
Jain identified the breakout zone around ₹310 and suggested that if the stock sustains above this level, the technical structure points toward an immediate upside target near ₹355. The combination of tight consolidation, explosive volume, and clean price extension makes this breakout particularly significant for short-term traders and long-term investors alike.
Today's trading session saw SMS Pharmaceuticals share price open at ₹279.10 per share on the BSE, with the stock touching an intraday high of ₹319.90 and an intraday low of ₹279.05 per share, reflecting the heightened investor interest following the positive regulatory development.
